Samsung's new money-back scheme could change how you trade in your Galaxy phone

In a significant move for consumers in South Korea, Samsung has introduced a new trade-in program for Galaxy devices, which began on January 14, 2025. Unlike traditional trade-in offerings, this initiative does not require the customer to purchase a new device. The program seeks to capitalize on the high trade-in prices offered for used smartphones, a trend that has been notable over the past twelve months. Samsung differentiates evaluated devices into three categories: excellent, good, and recycle, with corresponding payout amounts adjusted according to the phone's condition. The underlying strategy appears to be Samsung's aim to enhance the resale value of used smartphones in order to maintain competitiveness against rival smartphone manufacturers like Apple. The validity of this program is reinforced by Samsung’s commitment to keep Galaxy phones updated with software and security patches, reflecting an overall objective to raise the resale value of these devices. In recent years, Samsung has made strides in reducing the depreciation rates of its smartphones each year, with statistics indicating Samsung phones, such as the Galaxy S22 series, have lost around 66.7% of their value within the first 12 months. The motivation behind this new trade-in initiative is not merely economic but also reinforces Samsung’s long-term strategy of forming a loyal customer base. By providing better trade-in values without requiring the purchase of a new phone, Samsung is offering flexibility that could potentially attract more customers to take part in their ecosystem of products. Furthermore, this trade-in scheme illustrates a larger trend in the technology market, where manufacturers are increasingly incentivizing customers to return their old devices as part of sustainable practices, thereby reducing electronic waste. While this trade-in program currently operates only in South Korea, Samsung has plans to expand to other countries in future phases. The successful rollout of this initiative could pave the way for growth in trade-ins and resale values globally, mirroring trends seen in established markets for services like buyback and refurbishment. As consumers continue to prioritize sustainability and value, programs like Samsung's could lead to a more efficient market for used smartphones and contribute to an increase in Samsung's brand loyalty.